Currys Shares Rally as Earnings and Revenue Top Expectations

Currys (LON: CURY) shares jumped more than 8% on Thursday after the electronics retailer reported stronger-than-expected full-year earnings, profit and cash flow, driven by improved trading in the UK and ongoing cost efficiencies.

Adjusted profit before tax rose 37% year over year to £162 million, comfortably ahead of the £159 million consensus. 

Group revenue grew 3% to £8.71 billion, slightly beating the £8.6 billion forecast. Adjusted EBIT came in at £225 million, below the £229 million consensus and up 11% on the prior year.

The UK and Ireland delivered like-for-like revenue growth of 4%, with adjusted EBIT rising 8% to £153 million. 

Sales were boosted by market share gains and strong growth in services, credit and mobile subscriptions. Meanwhile, the Nordics returned to growth in the second half, and segmental EBIT rose 24% in constant currency.

Free cash flow surged 82% to £149 million, while net cash nearly doubled to £184 million, giving Currys its strongest balance sheet in over a decade. A final dividend of 1.5p was proposed.

CEO Alex Baldock said the group was building “real momentum” and noted that recurring revenue streams and new product categories were gaining traction. “We’re pleased with our progress, but even more excited about the opportunities ahead of us,” he said.

Currys said trading at the start of the new financial year was in line with expectations and that it remains “comfortable” with current market consensus.

It is targeting continued growth in higher-margin, recurring revenue services, including reaching at least 2.5 million iD Mobile subscribers before the year-end.